Getting the price you want to pay
by Paul Martinez
One of the most uncomfortable parts of a real estate transaction for many people buying or selling a home is the negotiation that goes on once an offer is submitted.
Many times a buyer client will express hesitancy to “go too low” or not want to engage in the back-and-forth of making a deal. This is normal, and our society tends to frown on negotiating or haggling on price.
However, knowing the how’s and why’s of negotiating a real estate deal can literally save you thousands of dollars, and is by far the most important part of a real estate transaction.
If you’re a little queasy at the thought of wrangling a new washer from the owner of the home you’re buying, or you’re afraid to ask for your closing costs to be paid, this article is for you.
First—map out your negotiation strategy! Too many times I see people rush into a negotiation without having a clear idea of their goals.
After you’ve defined that, you need to work backwards and map out a negotiation strategy to help you get there. This is the single most important step in this process, so please don’t skip it—spend a good amount of time on this and write it out! If you’re working with a good buyer agent, they should be able to walk you through this step.
Second—you must understand what it is the other side wants. Many times it is not money that is motivating a seller; they may need to move quickly due to a job transfer, or they may have so much equity in the house that they are just looking for a painless, straightforward sale over everything else.
Now, asking their agent will not usually yield much information—seller’s agents should not be disclosing any information that could put their client at a disadvantage. That said, there are plenty of resources out there for you or your agent to get information from.